China's Evergrande construction Co., liquidation.

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Sport
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China's Evergrande construction Co., liquidation.

Post by Sport » February 11, 2024, 10:50 am

The mega construction company in china is now in liquidation following a Court ruling. The Co.owes around $350B (US) $532B (AUD).

Australia exports most of its iron ore to china and this will have a knock on effect in Oz. I hope Oz does not get hurt too much in the future.



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tamada
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Re: China's Evergrande construction Co., liquidation.

Post by tamada » February 11, 2024, 1:04 pm

Rather parochial view. The reason Evergrande has taken so long to he wound up is to prevent China going down the proverbial. But you are right that Australia's exposure is probably bigger than most others.

During previous financial meltdowns, certain European and US banks and financial institutions were touted as being "too big to fail". Well, with Evergrande, they ain't seen nuthin' yet.
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Re: China's Evergrande construction Co., liquidation.

Post by Whistler » February 11, 2024, 3:14 pm

I doubt if it will even make much impact on Australian steel exports

1. The company has been in trouble for years so I doubt they have started new projects for quite a while

2. China has not been buying much Australian ore or steel making coals in recent years. Now freeing up their restrictions we should see an uptake of Australian raw materials as trade normalises despite Evergrande.

As Tam pointed out, a lot of shaky businesses in China, probably more to come. That may have an impact.
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Sport
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Re: China's Evergrande construction Co., liquidation.

Post by Sport » February 11, 2024, 4:42 pm

tamada wrote:
February 11, 2024, 1:04 pm
Rather parochial view. The reason Evergrande has taken so long to he wound up is to prevent China going down the proverbial. But you are right that Australia's exposure is probably bigger than most others.
Not parochial Tam, just wanted to leave it short and sweet. The remaining world will feel this ripple and Oz has been relying on china for too long. India, S/E Asia and some countries, the UK and Europe have I believe opened up to imports/exports from Oz. I have been watching evergrande over a period and watching its demise, especially that of the CEO/MD who is down to his last $4-5B, I think he has lost around $80B.

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Re: China's Evergrande construction Co., liquidation.

Post by Sport » February 11, 2024, 4:51 pm

Whistler wrote:
February 11, 2024, 3:14 pm
I doubt if it will even make much impact on Australian steel exports
1. The company has been in trouble for years so I doubt they have started new projects for quite a while
2. China has not been buying much Australian ore or steel making coals in recent years. Now freeing up their restrictions we should see an uptake of Australian raw materials as trade normalises despite Evergrande.
As Tam pointed out, a lot of shaky businesses in China, probably more to come. That may have an impact.
I think it will impact on our steel exports Whistles. china imports around 80% of Oz iron ore, so they are still buying as of 2023-4, followed by Brazil. Yep, evegrande has been going down the slippery slope for many years. India may take chinas place as an export market, see what happens over the next 1-2 yrs.

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